Reliance Share Price Hits All-Time High on Strong Q2 Earnings and Retail Expansion

Reliance Share Price – Reliance Industries Limited, India’s largest conglomerate by market capitalization, saw its share price hit an all-time high of Rs 2,632 on Wednesday, November 29, 2023, on the National Stock Exchange (NSE). The stock gained 9.92% on the day, outperforming the Nifty 50 index, which rose 1.23%. The stock’s market capitalization stood at Rs 16.8 trillion, making it the most valuable company in India.


The stock’s rally was driven by its strong quarterly results for the second quarter of fiscal year 2024, which ended on September 30, 2023. The company reported a 51.11% year-on-year increase in its net profit to Rs 168.11 billion, beating analysts’ estimates. The company’s revenue also grew by 132.44% year-on-year to Rs 630.05 billion, driven by robust growth in its oil-to-chemicals, digital services, and retail segments. The company’s net interest margin, a key measure of profitability, improved to 4.1% from 3.9% a year ago. The company’s asset quality also improved, as its gross non-performing assets ratio declined to 1.08% from 1.37% a year ago.

The company also announced a dividend of Rs 5 per share for the second quarter, which will be paid on December 15, 2023, to the shareholders on record as of December 8, 2023. The dividend payout ratio, which indicates the percentage of earnings distributed as dividends, was 23.79%, which is in line with the company’s policy of maintaining a payout ratio of 20-25%.

The company also provided a positive outlook for the third quarter and the full year, citing strong demand and recovery in its core segments, as well as its expansion plans in the retail sector. The company said it expects to grow its revenue by 25-30% year-on-year in the third quarter, and by 30-35% year-on-year in the full year. The company also said it expects to maintain its net interest margin at 4-4.2% for the full year, and its return on equity (ROE) at 20-22% for the full year.

The company also announced that it has acquired a majority stake in Just Dial Limited, India’s leading local search engine and online marketplace, for Rs 57.12 billion. The company said that the acquisition will help it enhance its digital offerings and reach millions of customers and merchants across the country. The company also said that it has launched its online grocery platform, JioMart, in 200 cities, and plans to expand it to 500 cities by the end of the year. The company said that JioMart will offer a wide range of products, including fresh fruits and vegetables, staples, dairy, bakery, personal care, household items, and more, at competitive prices and with free home delivery.

The company’s share price has gained 32.76% in the past month, outperforming the Nifty 50 index, which has gained 8.74% in the same period. The company’s share price has also outperformed the Nifty Bank index, which has gained 7.88% in the past month. The company’s share price has been supported by its consistent growth, strong fundamentals, and diversified business model. The company has a dominant position in the oil-to-chemicals, digital services, and retail segments, which provide a balanced revenue mix.

The company’s share price has a consensus target price of Rs 2,714.65, which implies a potential upside of 3.14% from the current level. The company has received 39 analyst ratings, of which 32 are buy, four are outperform, three are hold, and none are underperform or sell. The company’s share price has a 52-week high of Rs 2,632 and a 52-week low of Rs 2,000.

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